Carrier Global Beats Expectations as Analysts Maintain Moderate Buy Stance
Wall Street consensus remains cautiously optimistic with a mean price target of $75.69.
Carrier Global Corporation (CARR) has reported better-than-expected first-quarter earnings, prompting an 8.8 per cent surge in its share price on 30 April. The Palm Beach Gardens-based industrial firm saw revenue rise 2.4 per cent year-on-year to $5.3 billion, while adjusted earnings per share reached $0.57. These figures exceeded analyst consensus estimates, with revenue topping expectations by approximately six per cent and adjusted EPS surpassing the consensus by $0.51.
Management attributed the solid performance to robust growth in the commercial heating, ventilation, and air conditioning (HVAC) sector, particularly driven by orders from data centres. This strength was supported by upbeat demand in the residential and light commercial segments. The results stand in contrast to the company's broader market performance over the past 52 weeks, during which shares declined 5.2 per cent compared to the S&P 500's rally of 30.4 per cent.
Despite the recent underperformance over the last year, Carrier Global has shown resilience on a year-to-date basis, with shares up 26.5 per cent against the S&P 500's 7.9 per cent rise. The stock also outperformed the State Street Industrial Select Sector SPDR ETF, posting an 11.7 per cent year-to-date gain compared to the ETF's 27.4 per cent return over the trailing 52 weeks.
Wall Street analysts maintain a moderately optimistic outlook for the stock, with a consensus rating of "Moderate Buy" derived from 26 analysts covering the shares. The configuration includes 13 "Strong Buy" ratings, one "Moderate Buy", and 12 "Hold" ratings, representing a slightly more bullish sentiment than a month ago. For the current fiscal year ending in December, analysts project CARR's EPS to grow 8.1 per cent year-on-year to $2.80.
On 1 May, Baird maintained an "Outperform" rating on the stock and raised its price target to $75, indicating a potential upside of 12.2 per cent from current levels. The mean price target among analysts stands at $75.69, suggesting a 13.3 per cent premium to current trading levels. The Street-high price target of $90 implies a potential upside of 34.7 per cent, reflecting continued interest in the company's strategic positioning.
The company's earnings surprise history remains mixed, having topped consensus estimates in three of the last four quarters but missing on one occasion. While the current results reinforce investor confidence, the presence of 12 "Hold" ratings among the 26 analysts suggests a degree of caution remains within the broader analyst community regarding the stock's long-term trajectory.
